In Brief
Videocon Industries and its officers faced criminal prosecution under the Foreign Exchange Regulation Act for alleged violations of Sections 18(2) and 18(3) in foreign exchange transactions. An adjudicating authority initially imposed penalties, but the Appellate Tribunal for Foreign Exchange, on full merits analysis, held the company had not violated the Act and quashed the penalties. The criminal prosecution continued. The Supreme Court held that when an adjudicating authority exonerates a person on substantive merits—not merely technical grounds—for the identical allegations, continuation of criminal prosecution constitutes abuse of process. The Court allowed the appeals, restoring the discharge order and setting aside the High Court's decision.
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